If you joined Mark Sebastian and I on Thursday for my live event, you heard us talk about being able to trade anything just by looking at the chart.
So our client, B.A., threw out a stock yesterday that I had actually never heard of before.
But, boy, do I like the looks of this stock’s chart.
Check it out:
The stock is Mondelez International (Ticker: MDLZ), one of the world’s largest snacking companies. (In a delicious twist, MDLZ is based right here in Chicago.)
MDLZ has had a great run up from the low of $52.91 on March 3 up to the high Friday of $63.69.
Friday’s candlestick looks like a beautiful doji, which could be signaling an end to this uptrend.
If MDLZ opens lower on Monday, I will be looking to buy short-dated puts expiring on May 28, giving them a week to go.
As you can see, the option markets are a bit wide and there isn’t a ton of volume …
But I would be willing to take my chances on a cheap put purchase.
If MDLZ opens and trades lower on Monday, I would pay up to $.50 for the May 28 63 puts.
I would sell these at a quarter if they trade down to there. I would begin to take profits at a dollar.
There you have it. Thanks, B.A., for the tasty stock idea!
Thanks for Reading … See You Next Tuesday!